Home Buying in Mechanicsburg>Question Details

Sk, Both Buyer and Seller in Mechanicsburg, PA

What is the pros and cons of custom homes vs production homes? Especially, with respect to appreciation and

Asked by Sk, Mechanicsburg, PA Wed Jan 23, 2008

We are considering building a custom home in central PA. We wanted to know what are the pros and cons with respect to reselling and value appreciation.

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It is always a good investment to build new in this Central Pa Area - We are a very stable market and have not gotten hit by the 'bubble' in real estate but we were effected a little with the market changes.
The key here is to work with an agent who knows the area and can give you good comps for future growth and appreciation. Mechanicsburg is great with the new mall and Wegmans so that area for new development.
You will ALWAYS get a little more value out of a custom home compared to a production home. THe cookie Cutter range will only appeal to a certain buyer. The astute buyer goes for the custom home...
Be careful on the upgrades and custom design when you make the choice! Go with an agent who works with new construction and the area you are looking at. Hope that helps!
1 vote Thank Flag Link Thu Jan 24, 2008
Many of our customers ask this question of us as they mull over the issues of price vs features. There are a few logical ways to evaluate your options. First of all, when you are shopping "spec" homes in a standardized community vs "real" custom - it's almost like comparing apples to oranges. How much do you want to spend to get your most important NEEDS and how many WANTS come with it? You almost need to make a comparitive list. For example, we represent EGSTOLTZFUS @ Winding Hills in Upper Allen Twp. It is amazing to see the standard specifications that come with their 15 standardized models. This list holds up well when compared to many custom homes priced between $325K - $550K. The reason that builders have only certain models that they will build is because they can predict the costs.....they have built the home time and time again...they know up front what their profit margin will be. Amazingly, when you write a contract with EGSTOLTZFUS you know at the very beginning exactly WHEN that home will be delivered!! At the beginning of this wonderful subdivision, we delivered 39 homes one each for 39 weeks and never missed a delivery date!! Now, this is just one example that I can speak to. However, in our 20 years of business, we have had our customers choose to build a completely custom home as well.....original plans and every detail customized to meet the buyers requests. Two of the best builders in our area, in my opinion are Michael Martin and Don Farinelli...both of whom are builders in the Estate lots at Winding Hills. Their style, standards of excellence and build quality are second to none. The price differencial is significant, but the value is there for the discriminating buyer. Ok, your last part of your question deals with appreciation and resale....NOW, here's the kick. This is ALL governed by supply and demand. No one has a crystal ball. BUT, let's look at this example - if you went with the first scenario and built a production home (one of 15 set styles to choose from) and maybe you chose the smaller home with the lower build price. As the development grows - as more homes are built - your home gains value each year - due to material costs and available lots. Think about this: it is always BEST to have the smaller home in a neighborhood of many more larger homes....as your home value increases faster. The MOST expensive home in the subdivision, the one setting the benchmark is always harder to resell.

Did I give you enough to think about? Would you like to contact either myself or my husband? (we work as a team) We are available 24/7 to give you advice as well as guidence throughout your selection process. Our direct dial is 717-979-1871 or 717-579-9273. You are welcome to email us as well: weez4realestate@aol.com.
0 votes Thank Flag Link Wed Apr 23, 2008
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